Nearly half could cover just two months of expenses if their income stopped
Thirty-seven percent of Canadians earning self-employment income have delayed, stopped or reduced their retirement savings contributions in the past year, and 41 percent have done the same for investing.
According to the 2026 Self-Employment Report by Money Mentors, a Calgary-based non-profit credit counselling agency, in partnership with Angus Reid, another 36 percent have cut back on building an emergency fund.
Forty-six percent said they could cover no more than two months of regular expenses from savings if all their income stopped, including 13 percent with no savings at all.
Fifty-three percent used a credit card or line of credit to cover groceries, bills or other everyday expenses in the past year, because their self-employment income was lower or less predictable than needed.
Fifty-one percent experienced an income shortfall at least once in the past year, and 23 percent fell short of what they needed most months or every month.
Fifty-four percent reduced or stopped putting money into savings.
Forty-seven percent cut back on groceries or other household essentials, and 45 percent used savings or emergency funds to cover regular living expenses.
Twenty-three percent delayed or missed a bill payment, 22 percent borrowed money from family or friends, and 18 percent did not set aside enough money to cover the income tax or GST/HST they owed.
Sixty percent of women experienced an income shortfall at least once in the past year, compared with 43 percent of men.
Stacy Yanchuk-Oleksy, CEO of Money Mentors, said in the report’s announcement that more than half of surveyed Canadians earning self-employment income have used credit to cover everyday expenses.
Yanchuk-Oleksy said financial literacy “can only go so far when income is unpredictable, and bills keep coming,” and that people need support before cash flow problems grow.
Forty-eight percent reported feeling anxious or overwhelmed about their self-employment income or finances, and 28 percent reported losing sleep.
Twenty percent avoided taking time off, including sick days or vacation, because they could not afford to lose the income.
